IcomTech Promoter Magdaleno Mendoza Sentenced to 71 Months in Crypto Ponzi Case

The U.S. Department of Justice sentenced Magdaleno Mendoza, a senior promoter for IcomTech, to 71 months in federal prison after he pleaded guilty to conspiracy to commit wire fraud and illegal reentry. IcomTech, launched in mid‑2018, marketed supposed crypto mining and trading products promising “guaranteed” daily returns but operated as a multi‑level marketing Ponzi scheme. Promoters recruited largely Spanish‑speaking, working‑class investors via expos, community meetings and high‑profile events. Investors saw simulated online “profits,” were blocked from withdrawals and ultimately suffered losses when the scheme collapsed by late 2019. Mendoza collected cash at events, helped promote a worthless proprietary token called “Icoms,” and funneled investor funds to pay earlier participants and promoters’ personal expenses. Prosecutors say operators collected significant sums from roughly 190,000 individuals across the U.S. and other countries; earlier sentences include founder David Carmona (121 months) and former CEO Marco Ruiz Ochoa (60 months). Mendoza was ordered to pay approximately $790,000 in restitution and forfeit $1.5 million, including interest in a California property. For traders: this case underscores ongoing regulatory and law‑enforcement pressure on fraudulent crypto schemes, highlights the reputational risk of small, proprietary tokens (Icoms), and serves as a reminder to perform rigorous due diligence on yield promises and MLM‑style crypto offerings.